Rental Rate Calculator Commercial

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Commercial Rental Rate Calculator

Include Taxes, Insurance, and CAM for NNN leases.

Lease Financial Summary

Monthly Base Rent:
Monthly Additional (CAM):
Total Monthly Payment:
Annual Total Commitment:
Total Value for Term:
function calculateCommercialRent() { var sqFt = parseFloat(document.getElementById('totalSqFt').value); var annualBaseRate = parseFloat(document.getElementById('annualPricePerSf').value); var camRate = parseFloat(document.getElementById('operatingExpenses').value) || 0; var termMonths = parseFloat(document.getElementById('leaseTermMonths').value); if (isNaN(sqFt) || isNaN(annualBaseRate) || isNaN(termMonths) || sqFt <= 0 || termMonths <= 0) { alert("Please enter valid numbers for Square Footage, Annual Rate, and Lease Term."); return; } // Calculation Logic var annualBaseRent = sqFt * annualBaseRate; var monthlyBaseRent = annualBaseRent / 12; var annualCAM = sqFt * camRate; var monthlyCAM = annualCAM / 12; var totalMonthly = monthlyBaseRent + monthlyCAM; var totalAnnual = annualBaseRent + annualCAM; var totalTermValue = totalMonthly * termMonths; // Display Results document.getElementById('resMonthlyBase').innerText = '$' + monthlyBaseRent.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resMonthlyCAM').innerText = '$' + monthlyCAM.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotalMonthly').innerText = '$' + totalMonthly.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resAnnualTotal').innerText = '$' + totalAnnual.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTermTotal').innerText = '$' + totalTermValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resultsArea').style.display = 'block'; }

Understanding Commercial Rental Rates

Calculating commercial rent is significantly different from residential leasing. Instead of a flat monthly fee, commercial properties are typically priced by the square foot per year. Whether you are looking at retail space, industrial warehouses, or office suites, understanding the math behind your lease is critical for business budgeting.

Common Commercial Lease Structures

The "Rate per Square Foot" often depends on the lease type. It is essential to know which structure your landlord is using:

  • Triple Net Lease (NNN): The tenant pays a base rent plus a pro-rata share of the building's operating expenses, including property taxes, insurance, and common area maintenance (CAM).
  • Full Service Gross: The landlord covers all operating expenses. The tenant pays one lump sum monthly, making it the most predictable for budgeting.
  • Modified Gross: A middle ground where the tenant and landlord share certain operating expenses.

How the Calculation Works

To determine your monthly commitment, follow this standard industry formula:

(Total Square Feet × Annual Rate Per SF) / 12 Months = Monthly Base Rent

If you are in an NNN lease, you must add the CAM charges to this figure. For example, if you lease 2,000 square feet at $20.00/SF with $5.00/SF in CAM charges, your total annual cost is $50,000, resulting in a monthly payment of $4,166.67.

Practical Example

Imagine you are leasing a 1,500 SF boutique space:

Metric Value
Square Footage 1,500 SF
Annual Base Rate $30.00/SF
Annual CAM/Tax $8.00/SF
Total Monthly Rent $4,750.00

Key Terms to Know

Usable vs. Rentable Square Feet: In multi-tenant buildings, "Rentable Square Feet" often includes a percentage of the building's shared hallways and lobbies (the "load factor"). You pay rent on the Rentable SF, even if your private "Usable" space is smaller.

Escalations: Most commercial leases include annual increases, often tied to a fixed percentage (e.g., 3% per year) or the Consumer Price Index (CPI).

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